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Tracking Players, Building Loyalty
Competition is pushing the edge of the envelope when it comes to new technology in player tracking

By Allen Grant

Growing competition is fueling an unprecedented worldwide technological evolution within the gaming and resort industry that is drastically changing the day-to-day operation of land-based, dockside and tribal government casinos from the United States and Europe to South Africa and Australia.

            From the hotel bell desk to the casino slot floor—from the purchasing department to the tiers of television monitors in the surveillance room—new technology is becoming commonplace in an industry that for generations has been slow to adapt to change.

            Gaming is still a very, very small, niche market, although we’d like to think otherwise,” says Tim Richards, systems and product manager for Mikohn Gaming Corp., a multifaceted manufacturing company with several international clients in Canada and Australia.

            Historically, gaming has not been very quick to adapt to new technology. That was then.

   This is now. Gaming companies faced with a weakening worldwide economy and increasing competition are leaping the digital divide in an effort to fuel profits. And nowhere is the technological evolution more evident than in the development of efficient systems aimed at tracking and rewarding loyal players.

            “For the longest time, casino companies saw player tracking systems as a necessary evil, since the systems didn’t directly produce any profits or revenue,” Richards says. “With today’s competition for loyal players, casinos have identified player tracking systems as the most important gauge of a player’s characteristics and value.”

            High-tech tracking systems actually became prevalent in the casino industry “six to 10 years ago,” says Roy Student, chairman of Gaming Systems International (GSI), a trend fueled by the popularity of gaming and its worldwide expansion.

            “That competition has fueled today’s aggressive pace of manufacturing technologically more advanced player tracking systems,” says Student, whose company has systems in 60 casinos on five continents. “We’re trying to provide [casino clients] with state-of-the-art technology to help them begin, maintain and successfully utilize a database of their players.”

            Vince Manfredi, vice president of sales and marketing at Acres Gaming, agrees.

            “The evolution of player tracking systems has grown with a casino’s interest in the real value of slot and table game players,” Manfredi says. “With technology, we’ve drastically improved the growth and advancements within database systems.”

            It’s been quite an evolution for an industry that for decades showed little interest in tracking its more loyal customers. Of course, the first generation of player tracking technology was slow, limited and largely focused on slot play.

            “The primary trouble with early player tracking systems was the time limitations. It used to take six or seven days after the fact to analyze certain data,” recalls Manfredi, whose company lists as clients MGM Mirage, Station Casinos and several California and Australian properties. “Extracting data was a very slow process, so the information wasn’t as up-to-date as casino operators needed it. In fact, it was often too outdated to be of any real value.”

   Because the early systems did not track table game play, they did little to help a casino’s bottom line.

  “Player tracking systems in the late 80s handled simple tasks like tracking slot points,” Richards says.

  “The first wave of player tracking systems focused on slot players by using simple electronic boards with magnetic card readers to help casinos view coin-in and coin-out numbers, the amount of bills in the machines and length of play, for example,” Student recalls.

Competition Fuels New Technology
            Industry experts agree that competition between casino operators and the quest for loyal players has propelled player tracking into the New Millennium. Today’s systems track slot and table game players, speeding useful data into the hands of casino managers.

            “Today’s systems are designed to provide much more information to casino operators, including an understanding of customer demography and an awareness of which games are more popular,” Richards says.

            “Technological evolution in player tracking systems now allow casino companies to track specific groups, organize a database and handle a variety of new functions,” he says. “For example, the systems can analyze a particular weekend or the hours following a specific event, such as a concert, slot tournament or boxing event. The addition of tracking table players eases the casino’s decision making and control when it comes to comps.”

            Mikohn’s TableLink system has a “Safe Chip” feature designed to more efficiently track table revenues. The system utilizes a table sensor that counts each chip played, enabling casino managers to monitor table game wagers and comp players with the same efficiency used in tracking and rewarding slot players.

            “It’s something unique in the market,” says Richards. “It helps reduce overhead, increase efficiency and track all the grind play, not just the $25 players and above.”

            Several casino operators are already using some facets of the TableLink system, Richards says, including its card reader and touch-screen features. The “Safe Chip” feature will soon be operational in the MotorCity Casino in Detroit, Mich., a Mandalay Resort Group property, and in the Crown Casino in Melbourne, Australia. The Rio Suites in Las Vegas will test the system later this year.

            “It will create longer visits by guests,” Richards says. “And, that’s the goal of every operator.”

            Casino Data Systems showcased its first player tracking system in 1991 at Las Vegas’ Westward Ho and now has systems installed at Boyd Gaming, Coast Resorts and several California properties.

            A designer and manufacturer of technology-driven products for the gaming industry, CDS’ Super-PlayMate product utilizes the real-time capabilities of its OASIS computerized accounting system. Providing casino personnel with timely information, including player tracking data, the company’s OASIS system line allows casino operators a faster and more efficient way to determine how to reward and market to its players.

            “We evolved our original slot tracking systems into a fully developed casino management system,” says Stephanie Maddocks, director of system sales at CDS. “The biggest advancement is that we’re tracking players’ table game revenue with the same technology. It helps casino companies create a full profile of a player and an increased and more accurate player value.”

            Using hand-held, wireless computers, today’s tracking devices “can gauge a player almost immediately right on the casino floor,” Student says.  A Palm Pilot-type device, for example, can be used by a casino host to see exactly how much a player has wagered in action, time of play and the players’ win-loss results.

            GSI’s newest player tracking product is the GSI SIGNET casino management system.

            “We have products and systems from Las Vegas to Botswana in South Africa,” Student says. “Our latest system collects, manages and reports valuable information from a casino’s entire operation, making its easier for casinos to reward guests throughout the property.”

            GSI specializes in the total “turn-key” casino management systems, Student says, with an emphasis on resort destination properties. GSI has a variety of resort industry clients, including Marriott, Hyatt, Westin and Wyndham hotels along with tribal government and cruise ship casinos.

            Acres Gaming insists faster and more complete databases are crucial ingredients in the newer player tracking systems, Manfredi says.

             “Today, databases are key, allowing the casino operators to better identify their customer,” he says. “The availability and quickness of collecting and dispensing data is the biggest improvement in player tracking systems. Now, casinos can extract data as guests are playing and evaluate them more accurately. Three to five years ago, for example, data wasn’t available that quickly. Management can now make better educated decisions based on timely and accurate information.”

            “The key today is ‘know thy player,’” Student says. “Casino operators want to identify a player’s characteristics, so they can find a way to increase his frequency of play. Operators use that information to feed the player a wave of direct-mail offers and promotions. Player tracking systems help them to gauge a player’s overall worth to a property.”

            The current trend in player tracking includes tracing non-gaming expenditures. Advanced tracking systems monitor an individual’s spending on entertainment and food and beverages.

            “[Newer systems] are allowing casino operators to better identify a player’s entire worth—both gaming and non-gaming,” Manfredi says. “Plus, casinos will have the ability to automatically redeem and reward players on the spot without taking days or weeks to analyze data and determine a player’s value.”

            “Anything that creates revenue will be tracked using the newer player tracking systems” Maddocks says, “giving those casino operators a more efficient route to obtain a more well-rounded view of a player. The realization that customers didn’t necessarily spend all their money on gaming helped lead to technological developments now focusing on tracking other spending habits. Food and beverage, for example, is a revenue provider and the newer systems have features to track couples and even groups of visitors.”

New, User-friendly Products
             From televisions and VCRs to computers and high-tech telephones, simplicity is crucial. Player tracking systems are no exception to the rule.

            “Systems are clearly more user friendly than in the past,” Manfredi says. “It has to be a simple process. We are continuing to ease the use of products. Shortening the period of time and greatly increasing the ability for casino companies to expedite information is the overall trend.”

            Acres is utilizing Microsoft NT Windows technology to simplify operations.

            “All our systems are utilizing pull-down menus and Windows-style ‘Point-and-Click’ functionality,” Manfredi says.

            This industry-wide movement into simplicity will be a recurring theme for some time, Maddocks predicts.

            “All the technology in the world is useless if people can’t easily operate it,” she says. “Products have to be efficient in their abilities, yet still user friendly. Advanced player tracking systems will be able to issue comps and process jackpots more quickly and efficiently than ever before. And that will help reduce labor costs and make a player’s visit a more efficient and enjoyable experience.”

               Acres’ XtraCredit system provides players with free “credits” that can only be redeemed by playing a machine. The system keeps players from redeeming cash offers at a casino cage and walking out the door.

             “XtraCredit is a very efficient product offering players cash vouchers and eliminating the ‘walk-out’ factor from casinos,” Manfredi says. “Players are rewarded for their loyalty, and casinos are guaranteed play through redemption without the hassle of club booth redemption.”

             Competition for loyal customers and the desire of players for a more convenient gaming experience will propel the growth in player tracking.

            But providing more bonuses to the players will also be a key ingredient.

             “‘Bonusing’ has been an effective means of generating customer loyalty, and that’s the name of the game right now for casino companies,” Manfredi says. “Casino comp incentives and cash-back redemption features are all functions that the industry’s newest (player tracking) systems will be able to handle hassle free. Automation of player incentives and comps will allow operators to maximize the return of their marketing dollars.”

            Acres’ PointPlay product, currently operational at Mandalay Bay in Las Vegas, allows players to redeem earned club points right at the machines.

            “This type of automation of point redemption is more convenient and efficient for players and gives casino club booths and hosts more time to develop personal relationships with the players,” Manfredi says. “That’s where we’re going as an industry—more customer interaction, less hassles and a more comprehensive and quick way of tracking a player’s value.”

   Maddocks expects to see more future player tracking evolutions including “couponing” with bar codes, the ability for players to download cashable, promotional credits and systems for depositing funds.

   “In the near future, players will be able to deposit money at the casino cage when they arrive and play off or increase those credits from machine to machine without the hassle of cashing out and waiting for fills and so on,” she says. “And everything is easily tracked so operators can utilize that information for market and player rewards.”

   CDS’s latest player tracking and efficient systems will debut in Talisman Cruise Lines in Texas later this year.

   Cashless ticketing and electronic fund transfers will expand quickly in the casino industry and will be an integral aspect of player tracking and direct marketing.

   “Everything is moving closer to electronic fund transfers and cashless ticketing,” Manfredi says. “From a casino’s standpoint, it’s easier to control and track and it builds loyalty by offering players options with their earned points. Players aren’t interrupted in their play, and they can redeem points right at their machine. Happy customers tend to also be loyal ones.”

   “Electronic funds transfer is ready to go mainstream,” Maddocks adds. “Again, it’s a key element in making players happy and providing a more efficient system. It’s a win-win proposition for operators and players. Every machine can act as a redemption booth.”

            Mikohn, with its touch-screen tracking, “Safe Chips” and cashless ticketing on the slot side, is betting that the future of player tracking systems will also focus more on table game players.

            “As gaming moves forward and becomes more competitive between operators, special features like touch-screen tracking, for example, will be a compelling option for operators to provide to patrons in order to help build loyalty,” Richards says.

             Acres President and CEO Rich Schneider agrees.

            “I think as the casino industry becomes increasingly competitive, casino operators will look toward player tracking systems and database marketing to attract players to the property on a regular basis and build loyalty,” he says. “It’s all about building loyalty and building it the most efficient way possible.

            “When you apply a complete database filled with information such as point-of-sale information, retail spending and so on,” Schneider says, “casino operators will be able to effectively market based on a player’s overall value. The future player tracking systems will be more effective in terms of accuracy and speed of information retrieval. Real-time information will be the most efficient aspect of systems.”

            Another future trend, Maddocks says, will involve interactive player usage online.

            “The Internet has exploded in this society and we see more player sign-ups online and allowing players to view their points online,” she says. “Plus, the accessibility to obtain points for booking reservations and an entire gamut of possibilities within player tracking exists.”

            The customer will play the primary role in determining the future of player tracking systems.

            “Ultimately,” Schneider says, “casino patrons will determine the real value of this technology and the speed with which it is integrated throughout the world.”

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